Tesla reported another significant decline in car sales. This prolongs the difficult period amid intensifying competition in the electric vehicle market and the fallout from CEO Elon Musk's political activities.

The electric car manufacturer reported 384,122 deliveries in the second quarter, down 13.5% from a year earlier, AFP reported.

Shares rose after the announcement, which was in line with analysts' expectations but better than some leading forecasts in recent days.

The global sales figures released today reflect the more competitive nature of the electric vehicle market, which Tesla once dominated but now includes BYD and other low-cost Chinese companies, as well as Western automakers such as General Motors, Toyota, and Volkswagen.

However, Musk's political activism in favor of the right wing has also made the company the target of boycotts and demonstrations, which has weighed on sales. In recent days, Musk has renewed his feud with US President Donald Trump, which has sent Tesla's shares lower.

Musk donated more than $270 million to Trump's 2024 campaign, touring key Republican states.

After the election, he watched the launch of the Department of Government Efficiency, a controversial initiative that eliminated thousands of government jobs that were part of a “model of waste, fraud, and abuse.”

But Musk distanced himself from Trump over the White House's flagship tax and spending bill, which Musk called wasteful and misguided. In a social media post, Musk accused supporters of the bill of supporting “debt slavery.”

In response, Trump threatened to go after Musk's business empire and warned that he would deport the South African-born billionaire. Tesla shares fell more than 5% after the exchange.

Earlier today, Tesla shares rose 2.8%. | BGNES